Buying a home? Consider Hiring an Attorney

The most expensive thing most people will buy in their lifetime is the house in which they live.  In addition to being expensive and taking decades to pay for, the purchase of a house also represents one of the more complicated legal transactions most people will ever encounter.  Despite the need for contracts involving bankers, city, state and county tax assessors and other legal entities involved in the sale of land, most people never even consider hiring an attorney to assist them with the purchase of a home.  That's unfortunate, as the relatively small amount of money saved by hiring an attorney now could possibly save thousands of dollars later.

How can an attorney save you money?  By double-checking all of the terms and documents of the transaction to make sure everything is legal and proper.  Most people who buy homes don't bother to check zoning ordinances or whether or not the home or fence on their property encroaches on that of a neighbor.  An attorney can check these things along with tax issues and any one of a number of minor things that most buyers never even know to think about.

Right now in Texas, a number of homeowners who lost their homes to foreclosure are engaged in lawsuits against the company that sold them their houses.  Among the allegations in the case are suggestions that the company that sold the property did such things as:


Tell buyers with bad credit and even previous bankruptcies that they qualified for unusually large home loans.  Some of these loans had monthly payments that exceeded 50% of the buyers' monthly income.  In short, they agreed to lend buyers money that they knew the buyers could not afford to repay.

Provide buyers with mortgage documents that stated that the property wasn't being resold but was rather being refinanced by existing owners.

Offer loan documents that contained a number of blanks which the sellers filled in sometime after closing.  Buyers were later shocked to discover that their monthly mortgage payments were much higher than they had been promised.

Showed the buyers fraudulent appraisals that suggested that the property in question was worth 2-3 times its actual value.

A lawyer would have caught any one of these problems, had even one of the displaced homeowners bothered to hire one ahead of time.  And yet hundreds of buyers appear to have been victims of mortgage fraud because they weren't willing to spend a few hundred dollars to have an attorney look over the documents before they signed them.

Buying a house is agreeing to an obligation that can tie up your finances for decades.  It only seems reasonable that if you are going to spend hundreds of thousands of dollars on a place to live, you might want to consider spending hundreds of dollars to make sure that the terms of your purchase are legal and reasonable.  A little money spent now could save you a lot of money later.

Buy Properties in Preconstruction or Off Plan

Interested in getting in on the condo hotel trend in the Philippines? Perhaps you’ve heard about this new type of vacation home ownership and it sounds right for you.

A condo hotel unit, or “condotel,” is typically a three-star or higher property with a management company that takes care of all the hassles typically associated with ownership, including maintenance and finding renters when you’re not using your condotel unit.

With many new condo hotel properties coming on the market, when is the best time to buy? The answer is easy. In early pre-construction phase of development. Most condo hotels begin selling their units long before the property is built, and often before even the first shovel-full of dirt is overturned. The idea behind a pre-construction purchase is that you’re buying tomorrow’s property at today’s price.

One such property now on the market in the Philippines is Pacific Concord Properties, Inc., Flagship Lancaster Suites Condotel [Manila] development located along Shaw Boulevard, Mandaluyong City, Metro Manila, one of the hottest Condotel Investments in the Philippines

To be called Lancaster - The Atrium [which is the second Tower adjacent to the existing “Sold Out” Tower I] PCPI is now accepting Reservations for Studio, One, Two & Three Bedroom Suites adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 6 year interest free payment terms or up to 12 year “In-House” financing available, full condo ownership, no management costs for Condotel Suites, and minimum monthly maintenance fees, as buyers or sellers of Real Estate you really should take a moment to look at this Philippine Condotel Investment Opportunity

Marketed by PLC International Marketing Networks, the lead Marketing Partners with PCPI, the Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a “Full Service” Condominium Hotel [”Condotel”] offering Studio, One, Two and Three Bedroom Suites for sale.

To be completed and ready for turnover from December 2009/2010, the Lancaster Suites Manila Atrium Tower II will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Condotel Rental Pool.

Beth Collingz, PLC’s International Marketing Director said ‘This is a great investment opportunity for Fil-Am’s whom visit Manila for Vacations or Business as they can earn Rental Incomes [at current purchase levels] of some 12-16% ROI per annum as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Cebu Resort Residences. This makes Lancaster Suites one of the Hottest Investment Opportunities in the Philippines”.

All units at the Lancaster Suites have kitchen facilities. The standard unit price provides for the suite to be finished but not fully furnished. Included in the current price are the interior finishing’s such as tiled & fitted bathrooms, bedrooms with simulated wood plank flooring, living and dining area tiled floorings and lower kitchen cabinets/work tops installed. A complete optional extra interior fit-out package including appliances will be available towards the time the units are closer to being completed towards the latter part of 2009. Monthly condo dues are currently around 80 pesos/square meter of the unit floor area/month..

The Lancaster Atrium Suites are now available on the very affordable and competitive New Payment Plan that provides for Suites to be purchased on a No Interest No Down Payment basis with 67% of the payment payable over 60 equal consecutive monthly installments without interest and the 33% balance payable upon turnover of the unit or to be paid over an additional 5 years from turnover through our hassle free no prequalification “In-House” Finance Plans…

The current selling price [effective March 1, 2007] for the Lancaster Manila Atrium Tower A Tax Exempt Studio Units is Pesos 75,888 or $1,615.00 per sqm. The One Bedroom, Two and Three Bedroom Suites are priced at Pesos 84,994.56 or $1,808.80 per sqm including Government Taxes [R-Vat 12%]. Units may be purchased on a Six Year No Interest Charge Term of payment or longer term “In-House” financing plans. Turnover of units for Tower A will be from December 2009/2010

“Foreign Nationals are legally allowed to purchase as much as 40% of the total number of condominium units on the market at any given time. Overseas Filipinos and more and more foreigners are now emerging as a market for condotel units. Many or our clients are coming from different countries like South Korea, Australia, United Kingdom, Saudi Arabia and other parts of the Middle East” Collingz said.

Appreciation Makes Pre-construction Appealing. Some people wonder why they should buy in pre-construction phases. After all, your deposit monies are tied up for one to two years. The answer is you get in on the ground floor when prices are lowest and unit selection is greatest. As the condo hotel is being built, it is gradually appreciating. Developers implement planned price increases at various stages of the selling process, often as many as three to five price hikes.

If you purchase your unit at a pre-construction price, it potentially could be worth significantly more at completion. When you sell, that translates into a higher profit for you. The actual profit of course depends on the general market conditions, interest rates and competition. All preconstruction payments will be made to the Lancaster Suites Manila Atrium Tower A Equitable PCI Bank Escrow Trust Account. It is anticipated, given the track record on sales of Tower I Units that property appreciation for initial buyers of Tower A Atrium Units will be at least 60-70% on turnover of units.

Beth Collingz is the International Marketing Director for PLC Global Pinoy located in Metro Manila, which specializes in the sale of the Lancaster Brand of condo hotels. Visit her web site, www.plcglobalpinoy.com for more information on condo hotels and to see condo hotel listings, photos and prices.

Beth Collingz

Director - PLC International Marketing Networks

Budapest: the New Prague for Real Estate Investors

When Hungary and the Czech Republic joined the European Union back in 2004 they set the standards for economic achievement that the rest of the new entrants could only dream of achieving. 

Both Hungary and the Czech Republic not only embraced their new membership status, they went out of their way to create an environment so conducive for inward investment that both countries are now thriving.

As has been well documented, the stunning Czech Republic city of Prague became of such intense interest to international real estate investors even before the Republic joined the EU because it boasts almost inimitable charm, attraction and opportunity.  I say ‘almost’ inimitable because Hungary’s capital city of Budapest is equally well endowed with stunning ancient architecture, cultural attraction and a unique and timeless appeal.

As a direct result Budapest is suddenly becoming one of the hottest European cities for tourism and the business environment is so buoyant right now that the numbers of expatriates heading to the city for work is at an all time high.  These factors mean that the demand for real estate to rent is outstripping the current supply of well located and appointed property and prices in Budapest are starting to soar.

Where once Prague was the European capital city attracting the most overseas real estate investor interest, Budapest is now surpassing the investor levels Prague has enjoyed.  And one of the real reasons for this is the fact that property prices in Budapest are up to 25% less than those in Prague, and the past couple of years have seen price gains in the most desirable districts of Budapest reach 15% annually.

The opportunity to profit to the max is huge currently, but at the same time the window of opportunity is likely to be narrow for those wishing to buy into the projected period of rapid growth.  Those real estate investors who are buying right now have the strongest chance of realizing the greatest gains.  Over the medium term the demand for property in Budapest will not slacken but the property price margin increases will slow down as prices reach parity with the Czech Republic.

After this period of time it is likely that prices will continue to rise in line with local affordability and that potential rental income will still be impressive.  This will continue to bring investors to the market place which means an investor can purchase in Budapest with confidence that he will be able to resell his real estate assets when the time is right for him to release the gains he has accrued.

If you compare the potential fortunes of Budapest with Prague you will see just how much room there is in the market for growth and return, and how far demand can actually go for property for sale and rent in this stunningly beautiful Hungarian city.

Brazil: The Latest Exciting Emerging Real Estate Market

Since 2003 the Brazilian Government have committed to making major fiscal, political and fundamental changes to the country to improve the entire environment for foreign direct investment, as a result GDP growth rate is up, inflation is down and real estate prices are beginning to soar as overseas interest in the stunningly beautiful and amazingly diverse country of Brazil is intensifying.

Because Brazil is such a large country covering such a huge landmass it traverses many different geographic, environmental and climatic changes and offers a lifestyle alternative to suit everyone.  The appeal of the country is immediately obvious to anyone who travels to Brazil on holiday and because the path has been smoothed for foreign freehold ownership of real estate in Brazil, more and more people who visit the country are choosing to buy a holiday home or investment property in the country.

The most popular area with holiday makers, second homers and now retirees is the north east of Brazil where the weather is at its best and where the coastal regions are home to stunning palm fringed beaches and growing communities of expatriates who are enjoying the laid back, low cost lifestyle they can achieve in Brazil.

It is in this part of the country that real estate prices are really starting to go up.  The demand for real estate to buy and let is growing rapidly and the purchasing power of those overseas investors entering the market place is strong enough to support property price increases.

Anyone considering the world’s emerging real estate markets for maximum opportunity will find what they’re looking for in Brazil. The country has an active commercial property market, an active tourism market and local and overseas demand for housing is strong, therefore sufficient demand for real estate in Brazil exists creating the perfect environment for profit and gains. 

A final additional tick in the suitability box for Brazil as a destination for investment is the fact that the real estate buying process for foreign purchasers is straightforward, and additional taxes and fees associated with purchasing and owning property or land in Brazil are very low.

Banks Profit Big Killing Real Estate Values

Banks Profit Big Killing Real Estate Values

Everyone is aware now of the slow housing market and the fact that many people are losing their homes.  There is, however, another segment of the housing market that is seldom spoken of, but which is also being hard-hit by the current situation.  And the banks - who started the whole "tumble" - and who "profited greatly" in creating the "tumble" - are still profiting BIG !

First, let's talk about the homeowner.  In the 1990's, banks developed a GOLDMINE in the housing industry...the equity loan.  They began a huge marketing program to encourage people to take their money (savings) out of their homes and spend it.  They touted that the homeowner could "use the money for anything you want - a vacation, home improvements, college tuition, new car, whatever".  The banks then proceeded to appraise the home over the home's actual value and loan people equity up to 125% of the home's value.  This meant that people would no longer have any savings in their home - they would owe the whole value of the home at that time.  Anyone who didn't take out the money and spend it, was considered foolish - to have credit cards or pay interest on anything else, when they had money available in their home that they could pull out. People used their homes like an ATM.  Anytime the bills got too big, they just refinanced and took cash out or borrowed on an equity loan. Who made the most with interest and fees? The banks.

Who made the most money on these loans?  Yes, the banks. The homeowners didn't care about the fees the banks charged or the closing costs. The only thing they looked at was the big fat amount of money they could pull out and spend - as if it were the lottery. Who profited big? The banks.

As times were good and home values steadily increased, another segment of the housing market developed.  In times of affluence, ordinary people became investors, buying homes and condos to offer as rental property.  This is an intelligent way to save money on taxes and serve those who cannot afford to buy their own home, by providing a nice place to live for a reasonable monthly rent.  The other advantage, of course, was the appreciation on the property and having someone else help you pay the mortgage on the loan. The problem, however, was that much of the money they used to invest, came from home equity loans that they had taken out on their primary residences. The banks made this easier by providing "second mortgages", with high fees of course, and added prepayment fees and penalties to ensure they made a high profit, regardless of the life of the loan and with second mortgages, you could buy a 2nd or 3rd or 4th house or condo with very little down. But when the market values slipped and the appreciation never came, people lost money on the rentals and it resulted in losing on their personal residences also, because of the home equity loans we talked about above.   The only ones still guaranteed to make money?  The banks.

Now, that people have spent all of their savings in their homes and they owe more than the home could be sold for, many homeowners are letting the house go back to the bank...in foreclosure.  As many foreclosures as there are, it's still a small percentage of the total market.  Because it is such a small percentage, the banks can "dump" the houses for half of what would be the real value.  This further devalues the market price of the other homes that are for sale.  It's peanuts to the banks, but to the other homeowners out there that have to sell for one reason or another - it's devastating.

Worst part, when the crisis hit, the government instituted programs to bail out whom?  The banks !

Bahrain's Real Estate Market Hot on the Heals of Dubai

The popularity and success of the real estate market in Dubai is well documented; but in sharp contrast Bahrain - which is one of the Middle Eastern property markets with the greatest potential - is little known and often overlooked. 

Bahrain has a small but well establish luxury real estate market; and recent changes to legislation allowing for foreign freehold ownership of property within certain real estate developments in Bahrain has created a surge of investor and consumer interest in the kingdom.

The kingdom of Bahrain has long been home to a large expatriate community, with expats mainly heralding from the UK, Europe and the US.  Expatriates living in Bahrain generally enjoy an incredibly high standard of living, substantial tax free income and an inimitably luxury lifestyle - and the type of accommodation they seek has become the iconic style of real estate now for sale to foreign purchasers.  Indeed, the real estate developments where foreign freehold ownership of title is allowed in Bahrain epitomize quality and opulence.

In recent years Bahrain has been working hard to diversify its economy away from oil by focusing on five main business areas; namely business & financial services, tourism, information technology, healthcare & education and telecommunications.  As a result many more multinational companies have established bases and headquarters in the kingdom which have created more employment opportunities and in turn attracted more international executives and their families to Bahrain.

This influx of foreign residents to the kingdom of Bahrain has resulted in a thriving rental real estate sector which has further helped to underpin an already incredibly successful economy.  Recently Bahraini officials began to realize the potential of the real estate sector if they allowed for foreign freehold ownership, and this led to legislative and constitutional changes and the officials have been rewarded for their foresight by the creation of an incredibly popular and successful property market.

It’s a fact that many of the expats living in Bahrain are now taking full advantage of their right to own freehold title to real estate.  It is also a fact that there is still an increasing requirement for quality accommodation to let out in Bahrain and this is pushing rental rates sky high.  Both of these facts mean that real estate investors have a property market ripe for exploration in Bahrain with immediate income achievable from the rental sector and the release and realization of capital appreciation easy to achieve with a market hungry for completed resale property.

Therefore real estate investors looking for a market with more room for expansion than Dubai has, a market as equally popular with expatriates as Dubai is and a market offering property as magnificent as Dubai does need look no further than Bahrain.

A Surprising New Trend in the Real Estate Market ...

If, like most people, you are interested in real estate news and browse the headlines every now and then, chances are you might have read about it already ... and in case you haven't heard about it, then you might be very, very surprised about a new trend that may be contrary to what many people expect ...

Firstly, let's start with a few teaser questions ...

Let's suppose you had a lot of money ... hoards of it ... in early 2000, and were willing to invest it in real estate.
The question is ...

What sort of real estate do you think you would have purchased ?

Would you have purchased single family homes, multi family homes, two bedroom condos, raw land, coastal real estate, luxury homes, or ... ?

If you are trying to guess the answer, please do so now before you read the rest of the article :-)

Assuming you have your answer in mind, let's proceed ...

If your answer is been one of single family homes, multi family homes, two bedroom condos then give yourself a pat on the back ... you might have made quite a tidy amount of money ...

And if your answer is luxury homes, then give yourself two pats on the back, smile the biggest, most pleasant smile you have ever smiled ... you might have made well over a million dollars in profits :-)

For ...

<b>Luxury Homes are now one of the best performing segments in the real estate market !</b>

And what does that mean ?

Well, you might want to consider this ... according to some sources, after a decline of 7.1% in 2001, this segment gained 3.6% in 2002, 0.3% in 2003, 13.7% in 2004, and 13.2% in 2005 ...

And just what would that mean in terms of money ?

According to the Prestige Home Index, the price of an average luxury home in California's Bay Area is now $2.88 million - an increase of $336,000 from the previous year !

And that is more money than what selling several homes profitably might have made !

And just how many people could have foreseen this trend ? Well, your guess maybe as good as anyone else's in this regard !
While no one may be able to determine how long this trend will continue, there might be several other segments in the real estate market that might perform equally, if not better, in the future.

And one such possible segment may be ...

<b>Vacation Real Estate</b>

Another growing trend has been that people young and old have been moving to destinations like the Mexican Riviera, and are either setting up home there or are buying second or third homes there ... and gated communities are being set up in areas that were not very long ago petite little villages.

And the result - real estate values not seen before in the area ... and the values seem to be increasing too.
And how long will this trend continue ? Again, your guess may be as good as anyone else's in this regard.

A New Type Of Philippine Real Estate Investment

Enjoy ownership, luxury, & appreciation in a Condo Hotel vacation home! Considering retirement in a Tropical Climate For many British, Australians and Americans, retirement time is just around the corner. At home, with low interest rates and high cost of living, the prospect of trying to live on a pension, in old age, is a daunting one unless you are prepared to substantially downscale your lifestyle.

For some, moving to retire in another country is an option which has been successful in the past with Spain, Portugal, Mexico and Puerto Rico being among some of the more popular destinations. But why not consider retiring in the Philippines?

Over the past decade, the Philippines has become a retirement haven for thousands of foreigners, particularly the Japanese, Korean, and Northern Europeans. Along with Thailand and Malaysia, the Philippines developed communications, infrastructure, and service delivery systems specifically geared to meet the needs of foreign retirees. Better yet, unlike most European Countries and South America, nearly everyone speaks ENGLISH in the Philippines.

The Philippines offers a significantly lower cost of living. The Philippine Peso (PhP) exchange rate is approximately PhP 48 to $ 1.00 or PhP 96 to 1 Pound [Sterling (GBP)].

Housing, food, and labor costs are quite reasonable. A One bedroom condominium can be purchased for around $ 60,000 or GBP 32,500 or a Studio for only $ 34,000 or GBP 18,000 and one can dine out on average at a three star restaurant for less than PhP 500. If you hire domestic help, a private driver’s salary is approximately PhP 10,000/month, while trained housekeepers earn approximately -PhP 5,000/month. These salaries are lower if you live in the provinces.

Cable Television, Hi-Speed Internet and Satellite Communications are cheap. One can hire an air-conditioned taxicab for eight hours for less than $25.00. In a country where a provincial Governor’s salary is only PhP 28,000 per month and a Presidential Cabinet Under-Secretary earns PhP 35,000, your pension can go a long way. So, if you have a retirement income of approximately $1,500 to $2,000 per month (PhP 80,000 to 100,000) you can live quite well in the Philippines.

As for health care, most U.S. Health Management Organizations pay for medical expenses incurred in the Philippines. Check with your HMO. The Philippine Department of Foreign Affairs presently has a task force headed by former Secretary Roberto Romulo working to have the U.S. government accredit a number of first class Philippine hospitals for Medicare reimbursement. The Makati Medical Center, one of the nation’s best already has such accreditation. Unbeknown to many is that for years, citizens of nearby countries such as Thailand, Nauru, Tonga, Indonesia, and Malaysia have flocked to the Philippines for medical care, particularly sensitive surgical procedures. The quality of medical care at the better Manila hospitals such as the Asian, St. Luke’s, Medical city, Cardinal Santos, Philippine Heart Center for Asia, National Kidney Institute, and Makati Medical Center meets international standards.

A Japanese company is building a medical facility in Tagaytay city exclusively for Japanese nationals within the year. There are now close to 10,000 Japanese retirees in the country, and the number is growing annually.

The British government recently acquired a large tract of land in Fort Bonifacio to build a new Embassy. The British ambassador explained the larger facility is meant to help serve the growing number of British nationals retiring there as well. Japanese and Korean investment groups are buying homes and condominiums in Manila, and tracts of provincial land for retirees. This has caused a mini- Real Estate boom in the country. A retirement village exclusively for Japanese nationals already exists in Tagaytay, and more are planned. These are strong indicators of what is on the horizon

English is the Philippines’ official business language. Most of the people you will meet, from hotel workers, taxi drivers, sales or service people, government employees all speak English, or have a working understanding of it. The middle class speak English, without exception. All major newspapers and major broadcast companies use English. An English speaking visitor will never get lost in the Philippines. It is the universal use of that language that has been a strong incentive to foreigners. As well, communications links within the country and to other countries via the various commercial gateways is up to international standards. For example, the use of cell phones and text messaging is so common that housemaids, street vendors and food hawkers can be seen using their cell phones incessantly.

One will never want for adventure and sights to experience in the Philippines. There is always a colorful Fiesta, pageants, street festivals, and open public events going on. Lush with bountiful natural resources, one can enjoy the numerous beaches, resorts, golf courses, and play just about any sport, except skiing. There is an ice skating rink in Manila, though. Scuba diving and fishing are among the sports which draw the most number of foreigners to the rich aquatic offerings.

Shopping is the Filipinos’ second most popular activity, the first is eating. Manila is Asia’s undiscovered shopping Mecca. You will love the golden purple sunsets, the fragrance of the flowers at dusk, and the wonderful array of fruit and food. I used to enjoy watching the Sun set from the bar at the Philippine Cultural Center. There, you can listen to the Symphony, check out a play, or enjoy Grand Opera. There is just so much to explore and discover, especially in terms of nature, culture, and history. If you’re a betting man, there’s horse racing, the Jai Alai, numerous first class casinos, and of course, cock-fighting. Manila is well known for its exciting night life.

Beth Collingz

Director - PLC International Marketing Networks

10 Tips for Successful Real Estate Property Investment

Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn’t mean that profits from property investments are hard to come by.

Even during a real estate market slowdown, stagnation or depression profits can be made locally and overseas.  This article shows you the top ten tips that real estate investors apply to their property portfolio building strategy to ensure success from their investments.

1)    Research the curve - the concept of a property market cycle existing is not myth it’s a fact and is generally accepted to be based on a price-income relationship.  Check the recent historical price data for properties in the area of the country you’re considering purchasing in and try to determine the overall feel in the market for prices currently.  Are prices rising, are prices falling or have they reached a peak.  You need to know where the curve of the property market cycle is at in your preferred investment area.

2)    Get ahead of the curve – as a basic rule of thumb, professional real estate property investors seek to buy ahead of the curve.  If a market is rising they will try and target up and coming areas, areas that are close to locations that have peaked, areas close to locations experiencing redevelopment or investment.  These areas will most likely become ‘the next big thing’ and those who by in before the trend will stand to make the most gains.  As a market is stagnating or falling many successful investors target areas that enjoyed the best levels of growth, yields and profits very early on in the previous cycle because these areas will most likely be the first areas to become profitable as the cycle begins turning towards positive once more.

3)    Know your market – who are you buying property for?  Are you buying to let to young executives, purchasing for renovation to resell to a family market or purchasing jet to let real estate for short term rental to holiday makers?  Think about your market before you make a purchase.  Know what they look for in a property and ensure that is what you are going to be offering them

4)    Think further afield – there are emerging real estate property markets around the world where countries’ economies are going from strength to strength, where a growing tourism sector is pushing up demand or where constitutional legislation has been or is about to be changed to allow for foreign freehold ownership of property for example.  Look further afield than your own back yard for your next property investment and diversify that real estate portfolio for maximum success.

5)    Purchase price – set yourself a budget that will realistically allow you to purchase what you’re looking for and profit from that purchase either through capital gains or rental yield.

6)    Entry costs – research fees, charges and all expenses you will incur when you buy your property – they differ from country to country and sometimes even from state to state.  In Turkey for example you should add on an additional 5% of the purchase price for all fees, in Spain you will need to factor in an average of 10% and in Germany fees and charges can be in excess of 20%.  Know how much you will have to incur and factor this amount into your budget to avoid any nasty surprises and to ensure your investment can become profitable.

7)    Capital growth potential – what factors point to the potential profitability of your real estate property investment?  If you’re looking overseas at an emerging market, which economic or social indicators exist to suggest that property prices will increase?  If you’re buying to let out are there any indications to suggest that demand for rental accommodation will remain strong, increase or even decline?  Think about what you want to achieve from your investment and then research and find out whether your expectations are realistic.

8)    Exit costs – if you will incur substantial capital gains taxation liability if you sell your property investment for profit, will that render the investment profitless?  In Spain a foreign buyer can incur up to 35% capital gains tax, in Turkey on the other hand property sales are capital gains tax free if the underlying real estate has been owned for four or more years.

9)    Profit margins – what levels of capital growth can you realistically gain on your property investment or how much rental income can you generate?  Work out these facts and then work backwards towards your initial budget to work out your potential profit margins.  At all times you have to keep the bigger picture in mind to ensure that your real estate investment has good potential for profit.

10)    Think long term – unless you’re buying property off plan and intending to flip it for resale and profit before completion you should view real estate investment as a long term investment.  Real estate is a slow to liquidate asset, cash tied up in property is not simple to free up.  Take a long term approach to your property portfolio and give your assets time to increase in value before cashing them in for profit.

5 Tips for Overseas Vacation Home Buying Success

The dream of owning a vacation home in some sun-drenched overseas location is one the majority of us share, and because real estate proves itself time and again as a solid long term investment commodity, many more people are committing to purchasing real estate abroad as an investment that they and their family can also enjoy and benefit from.

When buying a vacation home abroad there are a number of key considerations to bear in mind to avoid some of the traps and pitfalls sometimes associated with buying long distance and in an unfamiliar country.  With these 5 tips for overseas vacation home buying success you can quickly cut a swathe through the research process and move towards securing the dream swiftly and securely.

Tip One – Learn the Rules and Regulations

Different countries have different rules relating to the right or otherwise of foreign citizens to own the freehold title to immovable property.  Some widely publicised destinations don't allow foreigners to directly own the land on which their property sits (Bulgaria) or more than one property (Cyprus) for example, and some countries are less economically or politically stable than your own which can mean that real estate related rules and regulations may change in the future.  Make sure you're comfortable with the workings of the country you're considering buying a vacation home in, and if in doubt seek professional advice about that country and the ambitions you hold for owning a holiday home in it.

Tip Two - Good Investment/Bad Investment

If you're buying a vacation home with a hope that it will go up in value and be not only a family retreat but a great asset, know that real estate, just like any investment commodity, can go down in value as well as up.  Furthermore not all countries have a real estate economy the same as the one in your own country – a little research would be wise into the historic nature of the property market in your country of choice as well as predictions for its future.  While such data is not a direct indication of how well your investment will perform it will arm you with more data to hopefully make your decisions easier.

Tip Three - Title Deeds and Legalities

Legal systems and the title deed registration process differ from country to country therefore know your legal rights and try and find out about the essential searches, surveys and title deed checks that need to be conducted before you should commit to buying your overseas vacation home.  Never enter into any form of contractual agreement without the direct assistance of an independent lawyer and never accept someone's word that a vacation home has its permissions and title deeds valid and up to date.  Insist on seeing and checking all important facts and data before signing on the dotted line.

Tip Four - Accessibility and Desirability

If you're thinking about making an income from your vacation home or even hoping to holiday in it yourself regularly, one of the most important factors to bear in mind is the accessibility or otherwise of your vacation home.  If your real estate is difficult to reach, with many miles to traverse and complicated and expensive plane journeys to plan, then it will just become a less desirable commodity over time. While a vacation involves getting away from it all and escaping every day life, a vacation destination and home should be easy and affordable to reach.

Tip Five - Enlisting Assistance

Consider enlisting the help of a reputable real estate agent, an independent lawyer and if you want to make money from your vacation home, a property management service.  Such professionals can save you time, effort and money and they can make the whole process of buying and owning a vacation home that much simpler.  Make sure you take references, examine credentials and see qualifications before employing anyone to assist you however, and if at all possible seek recommendations because anyone who does a good job will always get good press!

Buy to Let Rental Properties

Condotel Investments in the Philippines, Buy to Let rental properties are now being preferred to failing Pension Plans as more and more Filipinos and Overseas Property Investors look to the future and retirement.

20 Dollars a day for 6 years will buy you a Studio Condotel unit in the Philippines with a projected ROI through rentals of some 500 dollars per month after 3 years. With preconstruction property appreciating at some 20-30% per annum not only does the Real Estate Appreciation look good but the rental income is in excess of what many Pension Plans offer for the same or similar investment.

With many Overseas Filipinos and Offshore Property Investors looking to start saving for retirement, the Philippines with its comparative low cost of real estate yet high rates of Hotel Accommodations, make the Condotel investment an extremely attractive investment proposition.

Beth Collingz, International Marketing Director for PLC Global, a company specializing in Condo Hotel Sales and Investments in the Philippines for the Lancaster Brand of Condotels, said that many new investors are looking to replace failed pension plans and other future saving schemes with a solid investment in Real Estate.

“Many of my clients are looking for investments that will give them an income for retirement as an alternative to traditional private pension plans that have failed. Personally, I have always regarded Pension Plans as a glorified ‘Pyramid Scheme’. Most company pension plans are insufficient as are Government Pensions. Bank rates for Savings accounts are at record lows. Savvy investors are now looking for a more solid investment with potential for monthly income. Condotels in the Philippines fit the bill”

This potential, high rates of rental returns from Condotel Investments, currently from 8% up to 16% per annum, opens up a huge market not traditionally looked at by Real Estate Agents and Brokers whom all so often run around like headless chickens looking for normal residential profile “buyers” without looking at the by far bigger picture of investments, investing and retirement.

“We look at Condotels as pure investments. Not primarily as Real Estate. If you look at the Condo Hotel market as investing for future income, and think outside of the box, it is plain to see that Condotels are not only real estate investments but more importantly income generating property. Think of Condotels as a Managed Pension Plan. After all, Condotel units are fully managed property. The owner of the property does not have the hassle of renting out the unit and contend with all the normal pit falls of being an amateur land lord. This is taken care of by the Condo Hotel Management” said Collingz.

“One of my clients from Chicago, just purchased 4 Studio Condotel Suites at Lancaster – The Atrium Manila which is currently in preconstruction sales. His plan is to retire in the Philippines in 2012, live in one of the Suites and receive the Condotel rental income on the other three. His outlay for the purchase is only around 85 Dollars a day for 6 years by opting to purchase on a 6 year no prequalification, no down payment, no interest payment plan. Even before completing payment for the units, he will be receiving some $1,500 a month in rental income in additional to any Government or Private Company Pension Plan. Better yet, the rental income is in tune with inflation and buying on preconstruction terms gives real estate appreciation of some 60-80% over 3 years. As Hotel Rates increase yearly, so does the rental income”

Foreign Nationals are legally allowed to purchase as much as 40% of the total number of condominium units on the market at any given time. Overseas Filipinos and more and more foreigners are now emerging as a market for condotel units. Many or our clients are coming from different countries like South Korea, Australia, United Kingdom, Saudi Arabia and other parts of the Middle East,” Collingz said.

Lancaster - The Atrium Tower II [which is the second Tower adjacent to the existing “Sold Out” Tower I] is now accepting Reservations for Studio, One, Two & Three Bedroom Suites adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 6 year interest free payment terms or up to 12 year “In-House” financing available, full condo ownership, no management costs for Condotel Suites and minimum monthly maintenance fees – “You really should take a moment to look at this Philippine Condotel Investment Opportunity” enthused Collingz.

All units at the Lancaster Suites have kitchen facilities. The standard unit price provides for the suite to be finished but not fully furnished. Included in the current price are the interior finishing’s such as tiled & fitted bathrooms, bedrooms with simulated wood plank flooring, living and dining area tiled floorings and lower kitchen cabinets/work tops installed. A complete optional extra interior fit-out package including appliances will be available towards the time the units are closer to being completed towards the latter part of 2009. Monthly condo dues are currently around 80 pesos/square meter of the unit floor area/month..

The Lancaster Atrium Suites are now available on the very affordable and competitive New Payment Plan that provides for Suites to be purchased on a No Interest No Down Payment basis with 67% of the payment payable over 60 equal consecutive monthly installments without interest and the 33% balance payable upon turnover of the unit or to be paid over an additional 5 years from turnover through our hassle free no prequalification “In-House” Finance Plans…

The current selling price [effective March 1, 2007] for the Lancaster Manila Atrium Tower A Tax Exempt Studio Units is Pesos 75,888 or $1,615.00 per sqm. The One Bedroom, Two and Three Bedroom Suites are priced at Pesos 84,994.56 or $1,808.80 per sqm including Government Taxes [R-Vat 12%]. Units may be purchased on a Six Year No Interest Charge Term of payment or longer term “In-House” financing plans. Turnover of units for Tower A will be from December 2009/2010

All payments will be made to the Lancaster Suites Manila Atrium Tower A Equitable PCI Bank Escrow Trust Account. It is anticipated, given the track record on sales of Tower I Units that property appreciation for initial buyers of Tower A Atrium Units will be at least 60-70% on turnover of units.

Beth Collingz

PLC International Marketing Networks

Curb Appeal is Key to Real Estate Investing

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To sell a property for profit, you need to ensure that your property is attractive, and a  large part of that is making a first great impression. Make sure that your property makes a great impression from the curb by cleaning, repairing, and using good color contrast.

If you are interested in real estate investing for handsome profits, you need to consider the curb appeal of any property you wish to rent or sell. A big part of the real estate game is buyer and tenant psychology. One thing that researchers have found about tenants and home buyers alike is that emotional response accounts for a great deal of investor success. In other words, the investors who can appeal to a tenant or buyer’s emotions -- and make the tenant or buyer imagine themselves in the property -- has the greatest chances of success. Curb appeal means improving the first impression that your property makes. Studies have shown that when the first impression of a property is positive, it is easier to convince a tenant or buyer to invest.

There are many ways that you can increase the curb appeal of your properties without a great deal of time and money:

1) Clean. A very tidy appearance is paramount to good curb appeal. Therefore, be sure to scrub the sidewalk, flagstones, walkway, windows, and siding. Mow the lawn, rake the leaves, clear the snow, and do everything you can to create the neatest possible appearance. You can do much of this yourself, although you may want to hire professionals or at least rent a high-pressure cleaning system for taking care of the exterior tiles or brickwork of a home. If the sidewalk outside your rental property or home is crumbled and in poor shape, you can generally contact the municipality to fix the problem.

2) Choose great colors. The color of your property goes a long way towards asserting good appeal. In general, you want to consider the colors of the properties around your property. If you are selling a suburban home, for example, located in a lot surrounded by pastel colored homes, you do not want to paint your property a right color. It would stand out too much. The right color blends well with the properties on either side of it. Make sure that the colors are fresh by applying a new coat of paint. Don't forget the colors around the property, either. A bright green lawn or even crisp white snow contrasted with the few pine trees create visual appeal as well. If you're interested in real estate investing, learn which colors to select, or hire a professional to select the right colors for you.

3) Repair. It should go without saying that you should ensure that everything outside is in good working order and looks attractive. This means that any broken walkways, bare patches on the lawn, and rickety shutters should be fixed up at once. You'll find more success in real estate investing if you are selling a property that people want to buy.

Condotels Meet Investors’ Business and Leisure Objectives

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What could be better than owning a vacation home and earning rentals when you aren’t using it? Until recently, John Thomas with his Filipina wife from London, UK, owned a traditional vacation home, in Metro Manila, Philippines. But after a year away from the country — they arrived during the summer holidays to find the tenants that were renting the property had run away leaving the property abandoned and his caretaker, whom was no longer to be found, had pocketed the rent — he sold the house and bought two condo hotel units instead.

Now, Mr. Thomas and his family own Condotel Suites in Manila and Cebu, and expect to earn money when the rooms they own are rented out to other guests. Mr. Thomas, his wife April and their seven year-old daughter are planning to spend their 2007 Summer Vacation in their unit at the Lancaster Suites in Manila, Philippines, a 450-unit Condo Hotel built and managed by Pacific Concord Properties Inc under the Lancaster brand of Hotels.

Mr. Thomas says. “If Lancaster rents out the unit during 11 months of the year, I’ll make enough money to take my family on a second trip to the Philippines during the Christmas Holidays and go a long way to covering the mortgage payments”

Expectations like Thomas’s are driving the market for Condotels — condominiums you buy that can be rented out as hotel space — to new heights in the Philippines.

Owners of Lancaster Condotel units can arrange to stay in their units and they share 60% of any rental income. The Lancaster Atrium together with the soon completed Lancaster Suites Manila, one of the hottest real estate investments in the Philippines, will be the hub for Lancaster Condotels. The 42-story Lancaster Suites Manila, scheduled for operations next year, will feature studio, one-bedroom and two-bedroom Condotel units, as well as penthouse suites. The units will be available for daily, weekly or monthly rental, Collingz said.

“Lancaster Atrium is going to have a property manager and will be operated as a four-star hotel.” The Condotel development will include the Lancaster mini mall with grocery and convenience stores, retail center, restaurants, business center, a private exclusive members only Businessman’s Club and spa on the site, she said. Prices range around 150 per square foot on up to 250 a square foot. Construction already commenced on the Atrium project, excavations, foundations, sub basements, 5-levels of basement parking and the lower ground floors are already in place. Construction of the superstructure will commence next year for completion from December 2009. Lancaster – The Atrium is also located in Shaw Boulevard, Metro Manila, Philippines, adjacent to the nearly complete Lancaster Suites.

Several new Condotel projects also are in the works on the other side of the country. Collingz said that a major condo hotel project is being considered by the Company with several investors in Cebu, Philippines next year. “We’ve got so many clients requesting for Luxury Condotel Suites in Cebu and other areas in the country,” she said. “It’s like a whole new era of Overseas Investments that are coming up — it’s not something that we’ve typically seen in the past. (These Investors) are all characteristically looking for a five star hotel resort, with all the features of a hotel that can be used for vacations and then rent out the units when not in use”.

There are new and exciting luxury five-star properties or high end developments planned in Cebu Philippines next year that will be sold by invitation only and may start in the 150,000 to 200,000 dollar range, but can go all the way up to 600,000 dollars for 2 bedroom Penthouse suites and 800,000 dollars for a Grand Penthouse. Of course, International gateways from Europe, South East Asian and the United States to Cebu-Mactan International Airport is within 10 minutes and, all units have sea views, beach toys and other lifestyle amenities such as spa and fine dining restaurants and will come fully furnished and finished to the highest European or US standards with fully fitted kitchens, fitted bedroom suites and every unit will be sold including all appliances, split type central unit air-conditioning, plasma TVs’ and state of the art condotel management systems. Units will be significantly larger in size than a typical hotel room yet still a much better value for money investment option than paying 800,000 dollars for a studio suite in maybe Dubai or Panama or a cool million dollars for a condo in Chicago.

The planned high end Lancaster Mactan Resort condotels will be near the new Cebu Convention Center and Cebu International Airport which is key, to good year-round occupancy numbers, she said. The square footage can range from 700 square feet to 1,800 square feet for one and two bedroom suites or more than 3,000 square feet split level penthouse suite. “Why can’t we build, and sell, a - Trump Quality Condotel - in the Philippines and get the same buyers that flock to invest in his lifestyle developments” enthuses Collingz.

A financing solution

Condotels started in the Philippines as well as in the US and Europe in the mid 1980s, but did not become popular until after the Asian Crisis of 1997 made it difficult for hotel developers to obtain conventional financing for new projects. They turned to the condotel concept, pre-selling rooms to individual investors, to raise equity.

In theory, the Condo Hotel meets two objectives — that of the developer to get a project built and that of the buyer whom, like Mr. Thomas, wants a hassle-free place to vacation and the chance to make a little money on the side. Baby boomers are becoming active vacation homebuyers, says Collingz. “If you buy a condo in Manila,” she says, “you’re not likely to use it more than 30 days a year. If you want to rent it out, you’ll have to hire a management company and take your chances.

The attraction of a Lancaster Condo Hotel suite is that you can own a unit in a hotel, enjoy first-class amenities and standards of maintenance, then let the hotel company arrange all rentals for a 40% share of the revenues”

Deciding whether Condo Hotel Suites meet your objectives is not so complicated. Condotels are a little more expensive, costing 10% to 20% more than traditional residential condominiums in most markets because of the nature of the income earning investment potential and generally more amenities and facilities than would be found in most residential condo buildings. Monthly maintenance costs, to pay your share of the hotel’s upkeep, run about $50/month for your 300-square-foot studio unit which is much the same as a typical residential condo. The “Win-Win” clincher is the 12-16% ROI expected through rental returns that residential condominiums will never yield because of the Condotel Rental Pool concept of the development.

Buying a Condotel unit makes you an investor in the hotel industry. Collingz says the Philippine hotel industry is currently hot. Shangri-La, Four Seasons, Marriott and other resort and hotel developers are in build with several new hotels in the country. “We have more heads than beds and the industry should remain healthy for many years to come because we don’t have a lot of new Hotel Condominium projects coming into the market.”
Mr. Thomas says he purchased the least expensive condotel units available in the Philippines. Spending less than $45,000 for his Lancaster Suites Manila studio unit and about $85,000 last November for a one bedroom unit, expected rental revenues from his Lancaster units will more than cover his new 15 year mortgage payments currently being offered by Banco de Oro for the soon to be completed development.

Beth Collingz

Director - PLC International Marketing Networks

Buying a Vacation Home Overseas

With the British and American economies in quite a strong position many more Americans are considering putting some of their hard earned cash into buying a vacation home overseas and apparently one in three Britons has their sights set on buying a holiday home in the sun.

If you dream of owning a sunny villa in Italy, a cottage in Scotland or maybe a beachside apartment in the Caribbean, here are five essential tips to consider when looking for real estate overseas.

1)    Research Your Location

You may already have a favourite destination in mind and be visualising your life lazing by a swimming pool overlooking the Mediterranean Sea…on the other hand you may be interested in shopping around to find the best countries in which to buy a vacation home and make an investment into property. 

It’s wise to do a fair amount of research into any new destination and cover everything from foreign ownership of real estate rules, property taxes, the political and economic stability of a destination and also the investment potential a given country offers.  With this information in hand it will be easier to make the right decision about which location suits your lifestyle objectives, budget and long term investment plans.

2)    Employ Assistance

Finding a realtor able to assist with your search for the perfect vacation home could save you time, effort and even money in the long run – although most realtors take commission from any sales they make of course!  But a local agent will understand the dynamics of their property market and be able to quickly and efficiently track down real estate bargains that match your vision for your vacation home overseas.

Be aware that in some countries real estate agents neither have to be licensed nor qualified however and so take a recommendation if at all possible and tread carefully.

3)    Manage your Money

If you need to raise a mortgage to pay for your vacation home you may need to re-mortgage your home or raise finance in your home country to fund the purchase because in many countries it is difficult for non-residents to get a mortgage and in some of the emerging property markets around the world there is no possibility to get a mortgage.

When transferring money overseas beware of fluctuating exchange rates that can devalue your lump sum significantly and make the difference between you affording your dream home and affording a poor second best.  There are professional companies available who can help those buying property abroad to deal with fluctuating currencies…look into your options.

4)    Title Deeds and Legalities

Legal systems vary from country to country as does the land registry system, and in some countries title deed transfers are not registered at all which can make it difficult to prove who owns property.  Make yourself aware of the legal rights that you will have as a property owner in a given country and find out about any assurances you can get that you own the freehold title to the vacation home that you have bought.

Never buy real estate overseas without the aid of a good lawyer, check their credentials and ensure that any contracts or agreements you sign are translated into your mother tongue and that you check the wording carefully before you sign!

5)    Protect Your Assets

Once you make the transition from house seeker to vacation home owner you will want to keep your real estate assets well looked after.  If you are only going to be vacationing in your home overseas occasionally consider having a management company look after your home when you are away. 

Ensure a property that is to be left for periods of time is well secured because even in countries where there is very low crime a beautiful home left standing empty can become a temptation.

Get insurance to cover the value of your home and contents and make sure someone regularly checks that your property is in good order, that the weeds are not growing over your veranda and that your swimming pool is clean and ready for when you next take a holiday in the sun.